Question 1:- If the NPV of a project is negative then which of the given statement is correct?
a) IRR of the project is > the cost of the project
b) IRR of the project is = the cost of the project
c) IRR of the project is < the cost of the project
d) None of the above
Question 2:- If the degree of total leverage is 5 and % change in sales is10, then % change in EPS will be?
a) 20
b) 50
c) 30
d) 40
Question 3:- Which of the following is not a source of long -term finance?
a) Equity shares
b) Debentures
c) Treasury bills
d) None of the above
Question 4:- What are the different motives of holding cash in a business?
a) Precautionary motive
b) Transaction motive
c) Speculative motive
d) All of the above
Question 5:- If the current assets and current liabilities are Rs 2,000 lakh and Rs 1,200 lakh respectively. How
much amount can be borrowed on a short-term basis without reducing current ratio below 1.5?
a) Rs.1,200 lakh
b) Rs.1,000 lakh
c) Rs. 400 lakh
d) Rs.1,400 lakh
Question 6:- Which of the given statement is incorrect?
a) Payback period method does not take in to account time value of money
b) Pay back period method comes modern technique of Capital budgeting
c) Payback period is easy to understand.
d) Both A & C